Multiple Choice
Which of the following statement is true?
A) In each period,except for measurement errors,the current account balance and the capital account balance must sum to zero.
B) In each period,except for measurement errors,the sum of the current account balance and the capital account balance must be positive.
C) In each period,except for measurement errors,the sum of the current account balance and the capital account balance must be negative.
D) In each period,except for measurement errors,the sum of the current account balance and the capital account balance may be positive or negative.
Correct Answer:

Verified
Correct Answer:
Verified
Q21: If Ricardian equivalence proposition is true,a budget
Q22: The current account balance consists of<br>A)the trade
Q23: Suppose desired consumption is $10 billion and
Q24: Assume that Costa Rica,a small open economy,has
Q25: An economy in which output exceeds absorption<br>A)will
Q27: A capital account surplus necessarily implies<br>A)a balance
Q28: Which of the following statements is true?<br>A)The
Q30: If there are no factor payments from
Q31: For a small open economy,an increase in
Q45: Suppose output is $35 billion,government purchases are